Friday, April 20, 2001

OTTAWA - Today, Democracy Watch released the letter it has received from federal Ethics Counsellor Howard Wilson in which Wilson rubber-stamps the access-for-cash scheme for corporations at the Summit of the Americas as an ethical partnership (Please see below for text of letter from Howard Wilson). Under the scheme, in return for paying amounts ranging from $75,000 to $1.5 million, Canadian corporations will receive, among other things, the right to attend "networking events" at the Summit and, in some cases, to choose "priority seating" at Summit events.

In the letter, Wilson states that the Department of Foreign Affairs and International Trade ministers and senior public officials have "proceeded in accordance with Treasury Board guidance dealing with partnerships" and therefore have not violated the federal Conflict of Interest Code.

However, the Treasury Board document Wilson refers to: 1. is not binding; 2. was published in the "Stretching the Tax Dollar" series; 3. states in section I "Prudence and Propriety Issues" that departments must "maintain the highest standards of prudence and propriety in all aspects of collaborative arrangements" and "respect the government's policies on conflict of interest" and; 4. states in Appendix V "Donations and Sponsorships" that departments "must avoid donor and sponsor relationships that would not bear public scrutiny." (Please see Treasury Board document on the Internet at: http://www.tbs-sct.gc.ca/pubs_pol/opepubs/tb_o3/fgpe_e.html)

The Conflict of Interest Code is binding and requires ministers and others to "uphold the highest ethical standards so that public confidence and trust in the integrity, objectivity and impartiality of government are conserved and enhanced" and prohibits public office holders from, among other things: assisting private entities, and having even "the appearance of being placed under an obligation to any person or organization . . . that might profit from special consideration on the part of the office holder."

"By calling the summit's corporate access-for-cash scheme ethical, the Ethics Counsellor has, as in other rulings, ignored federal ethics rules and allowed the Cabinet ministers who control him to help their corporate friends without any penalty," said Duff Conacher, Coordinator of Democracy Watch. "Saving taxpayers money is not a valid reason for acting undemocratically and unethically. No wonder polls show Canadians believe the federal government is driven by wealthy corporate interests."

"The so-called "democracy clause" discussed at the summit should require all countries, among many other things, to have an independent government ethics watchdog," said Conacher. "Canada is lacking this and many other key elements of a democracy."

Office of the Ethics Counsellor
22nd floor
66 Slater Street
Ottawa, Ontario
K1A 0C9

Telephone 613 995-0721
Fax: 613 995-7308
Site: http://strategis.ic.gc.ca/ethics

April 19, 2001

Mr. Duff Conacher
Coordinator
Democracy Watch
1 Nicholas St., Suite 420
P.O. Box 821, stn. B
Ottawa, Ontario
K1P 5P9

Dear Mr. Conacher:

Thank you for your letter of March 21, 2001 requesting that I investigate which ministers and other public office holders were involved in designing and approving the sponsorship program for the upcoming Summit of the Americas and whether they have violated the provisions of the Conflict of Interest Code.

I have reviewed the matter of sponsorships for the Summit and found that the Department of Foreign Affairs and International Trade has proceeded in accordance with Treasury Board guidance dealing with partnerships. This guidance is set out in the document entitled 'Six Steps to Successful Collaboration' and may be found at:
http://public service.tbs-sct.gc.ca/pubs_pol/opepubs/tb_o3/fgpe_e.html

In view of the foregoing, I conclude that there was no violation of the provisions of the Conflict of Interest Code.

Yours sincerely,
Howard R. Wilson
Ethics Counsellor